Global investment firm Platinum Equity has submitted a binding offer to acquire Johnson & Johnson’s (J&J) diabetes unit, LifeScan, for about $2.1bn.
LifeScan generated net revenue of around $1.5bn in 2017.
Based in Chesterbrook of Pennsylvania, LifeScan produces blood glucose monitoring systems, which are used by over 20 million patients across 90 countries.
Suitable for home and hospital applications, the company produces blood glucose monitoring systems under OneTouch brand.
OneTouch products include personal blood glucose meters, testing strips, lancets, point of care testing systems and integrated digital solutions.
With around 3,000 employees, LifeScan operates manufacturing facilities in Puerto Rico and Scotland.
Platinum Equity said the acceptance period for the offer will end on 15 June and consultations with relevant works councils are planned during the same period.
If the offer is accepted by J&J, the deal is expected to be completed by the end of this year, subject to the satisfaction of customary closing conditions.
Platinum Equity chairman and CEO Tom Gores said: “We are committed to putting our financial resources and global operating expertise to work in support of the company’s core mission to improve the quality of life for people living with diabetes.”
Johnson & Johnson consumer medical devices and company group chairman Ashley McEvoy said: “LifeScan’s OneTouch blood glucose monitoring products play an important role in the lives of millions of patients living with diabetes, and following a thorough review of all strategic options, we feel confident that the business would have a promising future with Platinum Equity.”
In February this year, Johnson & Johnson acquired Abbott Medical Optics (AMO) for about $4.32bn.
As part of the deal, J&J acquired ophthalmic products in three areas, comprising of cataract surgery, laser refractive surgery and consumer eye health. The acquired business compliments J&J’s Acuvue brand contact lenses business.
Image: Johnson & Johnson headquarters in New Brunswick, New Jersey. Photo: courtesy of Nikopoley.